In times like this when everybody is affected by the worldwide pandemic caused by the Coronavirus, is it still possible to financially succeed? Some people may be asking, “How am I supposed to reach my financial goals?”
Things may be looking really bad and it’s normal to start asking questions like this. But I’m here to tell you that it’s not the end of the world. And yes, the thought of achieving financial freedom is very much possible by applying these 5 simple steps.
Step 1: Develop the Right Mindset
Most people may not realize it but one of the primary reasons they don’t succeed has to do with the kind of mindset they have. But what is a mindset? A mindset is defined by the free dictionary as “a fixed mental attitude or disposition that predetermines a person’s responses to and interpretation of situations.”
What has this to do with achieving your financial goals? Did you know that majority of the people who ended up becoming millionaires had a millionaire mindset even before becoming financially successful? Never underestimate the power of the mind because the kind of mindset you have will determine if you will succeed or fail.
Simply put, a person’s way of thinking plays a significant role in his success or failure. If you think like a loser then that’s what you are but if you think you’re a winner then that’s what you will be. In every game of life, success starts first in the mind of the player.
In addition to developing the right kind of mindset, I urge you to stay away from negative and toxic people. Stay away from those who only think, talk, and act negatively. Negative people will take you down with them and you don’t want that.
Instead, surround yourself with successful people, learn from them, and apply the principles they have used to get where they are now. You will never go wrong when you copy from successful people.
Step 2: Set Long-Term Goals and How You Plan to Achieve Them
Another reason why many people fail in life is that they don’t really know what they want. If you ask them what they want to do in life and what they want to achieve, some may say, “I would love to travel around the world … I want to have a beautiful place to live in … I want to retire early and enjoy my remaining years doing what I love to do … I want a comfortable life without having to work my butts off, etc.”
But the truth is, they don’t really know what they want. They have no goals and no plans on how exactly they are going to achieve them.
After making up your mind that you want to succeed in life, you must write your goals down and the steps you are willing to take to make your goals a reality. Yeah, I hear you asking, “Is that really necessary? Why bother writing them down?”
That’s exactly why you need to write them down. How do you strive for something when you don’t know what you’re striving for? Writing your goals and plans of action and posting them somewhere you can see them every morning when you wake up, serves as your motivation or driving force to carry out the necessary steps to arrive at where you want to be.
And every time you complete a task, cross it out and move on to the next course of action.
I would like to emphasize also the importance of not making excuses. Sure, we have all been there. We failed because we never ran out of excuses. All excuses are equal so no matter what excuse you give, or which excuse you choose to give, there is no good reason to fail.
Step 3: Take Action
Financial success does not end with your written goals and plan of action; you need to start taking action. Einstein said, “Nothing happens unless something moves.” You can write as many money goals as you wish but if you will not put your feet down and start working on them, you’ll get nowhere.
Know that taking action is the most important step towards success. Dreams and goals are achieved and accomplished only through action. Many people can have the same idea, the same goal, the same plan but how they execute it is what sets them apart.
“Taking action is the one thing that separates the winners from the non-winners, the haves from the have-nots, and the high achievers from the everyday people.” – Jack Canfield
Step 4: Pay Yourself First & Save as Much as You Can
You must be familiar with the phrase, “Pay yourself first.” But what does this mean?
Investopedia has this to say: “Pay yourself first” is an investor mentality and phrase popular in personal finance and retirement-planning literature that means automatically routing a specified savings contribution from each paycheck at the time it is received.
Accordingly, the goal is to make sure that enough income is first set aside into your savings or investments before monthly expenses or discretionary purchases are made.
How important is it to pay yourself first? By applying this principle, you are making sure that your future financial goals are covered, including building up an emergency fund, contributing to retirement, and saving for any other long-term goals, such as buying your dream house or dream car.
Paying yourself first is indeed the golden rule of personal finance and the sooner you get started, the better off you’re going to be.
Step 5: Start Your Own Business
One of the dreams many people want to achieve in life is to have their own business. But starting a business sounds like a challenge, especially for someone who has gotten used to working for somebody else. Someone said that starting your own business is a leap of faith. Why is this so?
It’s because this would require you to step out of your comfort zone and leave the security of a regular job for an uncertain financial future. However, having your own business will give you a lot of positive things such as total control of your time, a more flexible lifestyle, an opportunity to put your skills to work, and the potential to make more money.
Needless to say, you need skills and knowledge to start your own business and succeed. Statistics say that 95% of all businesses fail within the first three years. What’s your guarantee that you will be in the 5% who will succeed?
The truth is, your success or failure will all depend on you. Whether you will achieve your goal of financial freedom or not is all entirely up to you. How much do you want to succeed? What are you willing to do to make your dream a reality?
One equally important question is this: “What kind of business should you start?” In the kind of situation, we are in right now, it is best to start a home-based business. One that you can operate from the comfort of your home or anywhere else for as long as you have a laptop and a good internet connection.
I’m talking about online business. You have no clue about how to do this? Yeah, I hear you loud and clear. And so let me introduce you to Wealthy Affiliate, the best online platform that will teach anyone how to start an online business that could potentially make their dream of financial freedom a reality.
You can sign up for free membership, check out everything, and then decide if Wealthy Affiliate is for you or not.
By the way, I am in no way suggesting that you quit your job right now and start a business. You will need money to cover your daily cost of living so it’s not wise to “fire your boss” right away. Keep your job and set aside a few hours of your time daily to work on building your business.
I have yet to meet somebody who does not want to have enough residual income to cover their living expenses. Who does not want to have a comfortable life and a secure financial future for themselves and their family?
No matter how old you are or what stage in life you’re in right now, it’s not yet too late to start applying these five simple steps for you to become financially free.
Start with the right mindset; clearly define your goals and when you want to achieve them, take action even one small step at a time, save as much as you can, and start your own business.